Some of the challenges of financing pediatric medical education are shared
with all medical education; others are specific to pediatrics. The general
disadvantage that funding of graduate medical education (GME) is linked to
reimbursement for clinical care has uniquely negative consequences for free
standing children's hospitals because they therefore receive little Medicar
e GME support. This represents both a competitive disadvantage for such hos
pitals and an aggregate federal underinvestment in children's health care t
hat now amounts to billions of dollars. The need to subsidize medical stude
nt and subspecialty education with clinical practice revenue jeopardizes bo
th activities in pediatric departments already burdened by inadequate reimb
ursement for children's health care and the extra costs of ambulatory care.
The challenges of funding are complicated by rising costs as curriculum ex
pands and clinical education moves to ambulatory settings. Controversies ov
er prioritization of resources are inevitable. Solutions require specificat
ion of costs of education and a durable mechanism for building consensus wi
thin the pediatric community.